US proposes $70,000 fee for foreign students to work
Universities would face steep new charges under plan that could affect Indian students
The Trump administration has proposed charging US universities $70,000 for each international student seeking work authorisation under a popular employment programme, a move that could sharply reduce opportunities for foreign graduates, including thousands of Indians hoping to build careers in the United States.
The Department of Homeland Security (DHS) announced the proposal on Wednesday, saying educational institutions would be required to pay $70,000 for a student’s initial participation in Optional Practical Training (OPT), which allows foreign students to work in jobs related to their academic qualifications.
An additional $30,000 would be charged for subsequent OPT recommendations, including extensions available to graduates in science, technology, engineering and mathematics (STEM).
The proposal forms part of President Donald Trump’s broader efforts to tighten immigration rules and protect employment opportunities for American workers.
Universities to bear the cost
Under the proposed regulations, institutions certified to enrol foreign students would have to pay the fees before recommending eligible students for employment authorisation.
Although the charges would be imposed on universities rather than directly on students, education experts fear institutions could pass the costs on to international students or sharply reduce the number of graduates they recommend for work.
Currently, students generally pay an application fee of approximately $500 for employment authorisation, while universities do not face the proposed charges for OPT recommendations.
The new fees could therefore transform a programme that has been a major attraction for international students considering American universities.
What is OPT and how would the new fees work?
Optional Practical Training allows international students holding F-1 visas to gain practical work experience in the US in jobs directly related to their field of study.
How long can students work?
Most eligible students can work for up to 12 months. Those with qualifying STEM degrees can obtain an additional 24 months, taking the total to 36 months.
What are the proposed charges?
Universities would pay $70,000 for the initial OPT recommendation and $30,000 for subsequent recommendations, potentially bringing the total to $100,000 for a student requiring an extension.
Who would pay?
Certified educational institutions would be legally responsible for paying the fees. Whether universities would pass the costs on to students remains uncertain.
Will existing OPT students be affected?
The proposal would apply prospectively to new recommendations after the final rule takes effect. It would not impose the fees retrospectively on existing authorisations.
When could the changes take effect?
The proposed rule provides for a 30-day public comment period and a further transition period following publication of any final regulation.
US says move will combat fraud
The DHS says the proposal is intended to combat fraud, strengthen the integrity of the immigration system and protect American workers.
The department argues that the OPT programme has been exploited through fraudulent employment arrangements and schemes designed to circumvent other employment-based visa restrictions.
The proposed fees would encourage universities to exercise greater scrutiny when recommending students for practical training, according to the department.
The government also maintains that the programme should not become a means of supplying employers with inexpensive foreign labour.
Concerns over foreign talent
Education organisations and business groups have warned that the changes could damage America’s ability to attract international students and skilled workers.
Fanta Aw, chief executive of NAFSA, an association representing international education, warned that restricting opportunities for foreign graduates would hurt the US economy.
“Driving away the talents, perspectives, and aspirations of international students will only hurt American innovation, economic growth, workforce development, and global leadership,” she said in a statement quoted by AP.
American universities depend heavily on international enrolment, while technology companies and other employers recruit foreign graduates for specialised positions.
The proposal comes amid growing concerns about declining international student enrolment in the United States.
What it means for Indian students
The changes could have significant implications for Indian students, many of whom pursue degrees in engineering, computer science and other STEM disciplines with the expectation of gaining professional experience in the United States after graduation.
Under existing OPT rules, eligible foreign graduates can work for up to 12 months in positions related to their studies. Qualifying STEM graduates can apply for a further 24-month extension, allowing up to three years of employment.
The proposed fees could make universities more reluctant to recommend students for the programme, potentially narrowing the pathway from American universities to US employment.
However, the proposal has not yet been implemented. It must go through the federal rulemaking process, including public consultation, before any new fees can take effect.
The changes could also face legal challenges from universities and business organisations.
— With inputs from Reuters and AP
